Which of the Following Statement(s)regarding Activity-Based Costing Is (Are)true? I

question 67

Multiple Choice

Which of the following statement(s) regarding activity-based costing is (are) true? I.Use of activity-based costing improves cost tracing by using more cause-and-effect relationships to assign indirect costs to activity centers.
II) An activity-based system is characterized by multiple cost pools and multiple volume and activity cost drivers.
III) Activity-based costing can cause distortion of cost,assigning too much cost to some products and too little to others.

• A) I and III
• B) I and II
• C) II and III
• D) III only